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tv   Key Capitol Hill Hearings  CSPAN  March 4, 2014 12:00pm-1:01pm EST

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is that a fairer assessment by the editorial board this not judgeuest: i will the new york times editorial board but i will say he is mounting a difficult endeavor. when you look at the poverty report in the past six budget. you see he is trying to go after poverty programs to reform welfare, and a lot of times that does mean cuts and cuts to programs i can start and medicaid and programs that are very important to a lot of people. his argument is from a conservative side that maybe those programs can be reformed, even if that means a reduction in funding, they can serve people better. to make anis hard argument about poverty that goes beyond how much something should be funded but that is what he is
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trying to do. he has struggled the past few years when it comes to spending. he is doing the same. it is difficult to talk about the programs beyond the funding levels. that is where president obama also recognized republicans may have not necessarily a weakness but a place where democrats can truly crash -- clash with them and maybe score points. maybe more of a political document this year heading into the elections. is that a sense that this is more about talking points now than passing a real budget? guest: yes and no. i think the budget wars are a little bit complicated. there is some room for potential talk. we all know a budget deal was struck by house republicans and democrats. fiscal year spending has already
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been set. you have seen senate democrats decide not to propose a budget this year. it will run on the president's budget for the most part. the senate will not have a budget. ryan will likely have a budget that will pass the house later this spring. where are the areas of compromise? if you look mostly at the president's budget, you see an earned income tax credit. that is being offered by the president as something that should be expanded. if you look at the poverty report monday, he praises the earned income tax credit. republicans have different views. use all marco rubio in the senate talk about killing the program. marco rubio in the senate talking about killing the program. the earned income tax credit, which the president wants to expand, was really a republican proposal a few decades ago. republicans like having people work and having people reported
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for work. this could be an area where there are twin carried -- tinkering. expand the like to tax reduction for families who have children. republicans have been focusing on this for the past year. mike lee, one of the most conservative members has been talking about using the tax credit as the core of what republicans have. see at least two areas there could be talks. credits, we are seeing political messaging more than anything else. host: what are the expectations for how the budget process is going to work on capitol hill? will the senate passed their own budget? the senate has announced they will not pass a budget this year. i think patty murray, the head of the budgeting for the senate democrats, she believes that
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because of the budget deal she struck with chairman brian, that it is not necessary to go debate in a long budget this year because the fiscal caps are already set. i think ryan knows his budget will likely only passed the house. i think the budgeting has already been set for the most part. dave camp just proposed a big passage in the house that looks at reforming the individual rate and the corporate tax rate. in obama's budget you see the president saying let's reform corporate taxes, get rid of reductions. -- deductions. republicans want a wholesale reform of the tax code and say it -- change individual and corporate tax rate, lower them both. i think corporate tax reform, child tax credit -- these are areas of discussion. i think most people on capitol
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hill believe expectations are low. this is an election year. a budgetl ryan having in the house. if he does not get democrats to support the budget plan, how likely is it republicans can move it on their own party boat? how much dissent will he run into? very: i think that is a tough question for chairman brian right now. when you look at the budget deal passed in december and brought up in the house, 62 republicans defect it on the budget deal. they did not like the compromises or how it was formed. one of the most popular republicans in the house. i would venture to say he has can eventical capital john boehner. he really carries weight with in the house. for someone with that kind of stature in the house on the key budget deal, 62 republican defections shows you how
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difficult it will be to pass his own budget. we did see this beaker talk about this project. balanced budget, does not have too much in terms of a budget deal or a deal towards compromise, i think it could safely past the house. anything passing the house, because republicans are so divided, how to have an agenda, i think it will be struggle to get to 218 republican vote. host: talking to robert costa, national political reporter. if you have questions or comments, give us a call. phone minds are open. numbers are on the screen. collars are ready waiting to talk to you. starting with all the in philadelphia on the line for independents. good morning. caller: good morning, gentlemen. every time you talk about a
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budget am a you always hear about social security, medicaid and medicare going broke but you never hear about food stamps, welfare, public housing. they are never going broke. as far as earned tax income credit, one caller said these people make more money than they ever paid in. plus, the child credit. how many of those checks are going to mexico? you talk about an air of spring, getting really close to an american spring. people are fed up with this stuff. you all at her wake up pretty -- you people better wake up pretty damn click is all i have to say. guest: thanks for your question. countyup in bucks pennsylvania. i think when you look at the debate right now, i think your argument is being heard from a lot of people on the right side
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of the ideal. i talked to stephen moore. he said there is a backlash among many conservatives about the expansion of the social afety net, especially during time of recovery there is backlash. i think that president is quite confident with the budget today that an expansion of spending on the programs will be political -- politically potent and important for democrats this fall, especially in red states. i think the argument is being that and the line is being drawn . republicans are not going as hard as welfare as they have in the past. this is a really interesting moment. it is the first time since 1996 when bipartisan reform was passed that you see republicans going at this, but they are doing it in a way that is cognizant of the political
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matters. they know that winning low and middle income voters is difficult or the. -- for them. host: hairy. you are on with robert costa. knowr: i would like to that this budget include paying back the bondholders to general motors? guest: i am not sure. i have read a lot of the proposals in memo form. i have not seen anything about that. bailout,oint about the just like the previous caller, bob, when i am out there on the campaign trail, talking to voters ahead of the midterms, bailoutsre --hear mentioned. this is something the president
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is grappling with. he wants to see more funding for infrastructure, anti-poverty programs, but at the same time he and his aides are well aware this is a divided government, in many ways a divided country, politically. he is not going to appeal to people lifting the bailouts as the number one issue, but that the stance the white house is going to take. the: how do you feel about bailouts? what are your top issues? caller: i would like the people that this administration took their life savings, i would like them to be paid back. pay back some, but they will not pay back us. with: what you have seen what the president is doing today is actually a quite populist budget, and ryan's
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report on monday had a similar air of populism that might not address exactly your frustration, but it is in the ballpark. there are a lot of voters looking for a more populist message, a real appeal and agenda for people struggling, voters, but income middle-class voters -- people that run businesses, people that are in industry. there is a sense among the leadership of both parties that that is where the key swing is right now in 2014. host: a call -- a comment from facebook and then a two-week. bob says with all of the minus opposition, he he might as all try to push a bus up a steep hill. james is asking why are we talking about a budget that will not ever be voted on? guest: there is some cynicism
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about the budgeting process, but remember, in december, there was a budget deal struck. it was a rare moment when pay ryan and paul ryan -- patty murray and paul ryan were able to come together. what comes to the floor and what does not come to the floor is a decision for party leaders, but the process is important because it enables observers, voters, the press to understand should a party when control of the senate, the house, or the white house, where would they go with the country. the budget might not be passed on the floor of the congress in either chamber, but it will be parsed over by voters a cousin has details. paul ryan's previous budgets have shown a reduction in social safety net spending, a reduction in medicaid, head start, food
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stamps, and that really set the tone for the republicans message, and with the president, he is focusing on the poor, on low-income voters, abc details of that in his budget that is one of the best ways to understand where people stand. host: roanoke, virginia. cornelius. you are on with robert costa. caller: how are you doing. guest: good morning. caller: look, i am calling about what is going on. frustrated about this extension of unemployment, for one thing. first of all, what they did wrong, when they started it off to extend unemployment for a year, that is the wrong thing they did. then they tried for six months, and then they wanted to extend it for three months, and then they still voted against it. they won't pass it because the
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next thing they did wrong was and then, also, a lot of people are losing homes. they do not have income coming in. also, i know quite a few people that have lost their homes, had utilities cut off. there are people starving. a lot of people have been looking for jobs for more than six months. host: robert costa, where are we on unemployment insurance? guest: i think that is a correct assessment in some sense in that there is not a deal struck yet our long-term unemployment insurance, how long they should be extended. i think there is a reluctance, when i talk to my republican sources, about extending a program too long. you see that in this ryan report and other documents. a look at unemployment insurance and other social programs and
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wonder how long they should be extended, and the president says not only should they be extended, that funding should be increased. the unemployment insurance debate is part of what the president is doing today with his budget. it is really seizing the issues, the concerns of low income americans, and finding a way to make that a political agenda to have program and policy recommendations that appeal to them and using their frustration, perhaps, with republicans on capitol hill who have ideological, fiscal, and political reasons for opposing these extensions, and using that to draw a line between the parties. host: dorothy in baltimore, maryland, on our line for independents. good morning, you are on "washington journal." caller: good morning, gentlemen. toave a couple of things think about.
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why do people call cuts reforms? just cutting something is not a reform. people talk about welfare, it does need to be reformed, but they could have job training or assistance on the side so they could help you find a job while they give you help. that is something that could be reformed. security hasocial $2.7 trillion in surplus, and i believe -- and this is just me believing this because nobody has said it -- this is why the republicans want to go after it because this money is owed to us from the government, and if they do the things they want to do, they will never have to pay it to us. host: what is your question? caller: my question is what in continued spending
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from before obama got into office -- continued spending and not new spending? host: robert costa? guest: most of the budget is continued spending, if that is how we want to frame it. it is programs that have been in place and passed by congress and continue to be supported by congress. you have seen an increase in spending and asking for fresh spending on defense issues in spending.n of fresh if you look at our stores on nutrition, health for low income families, housing -- those types of things. the budget is a way to reach forward with continued funding. the new stories, the earned credit, the child tax
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credit, that is news coming out of the budget. host: any thoughts on the differences between cuts and reforms, what she brought up earlier? guest: that is a great point because cuts, are, of course, cuts. what republicans are trying to is not the cast as the party of coldhearted budget-cutting. ryan struggled with this is a issueskesman on poverty for the last several years. republicans are trying to talk about poverty reform. and ryan talks about the importance of job training and work for these programs. reform case for broader -- is that breaking through for republicans? it is difficult to say. i do not think so, yeah a lot of ways. there,hen you are out
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you hear questions like hers, is this just budget cuts. parties are both trying for reform. is purelyent's budget not just an increase in funding and spending recommendations, report and likely budget merely budget cuts. there are reforms in both. host: smiley is asking on our have budget -- why spend so hard to pass in the last five years than the previous years? guest: they have become political documents. they are not areas where politicians could bottle up and hash out a deal. that happened in december, and was a surprise. as i said, it is a way to establish where they would like to go with funding. it is hard to pass them because
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his divided government -- the senate is controlled by, kratz, the house i republicans. controlled by democrats, the house by republicans. that limits even republican leaders from passing things that will get majority republican support. in the senate, harry reid has declined to even have a budget this year. ryan, because it would likely be a republican budget, it will not have a chance in the senate, and that is because we are in an election year. the only time in this climate we have seen budget deals is way before the election, where we saw that last year. host: we are talking with robert thea, reporter with "washington post." here to answer your
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questions and take your comments. pennsylvania. our line for democrats. good morning.r: i wanted to discuss means testing, and have further elaboration on what that meant. it has been tossed around in the political world, and i wanted to find out how that is used to address the feasibility of programs and whether they should be cut or not. seen a largee not focus on means testing. by the federal government on your means, how much you make, and that determines how much you qualify for certain subsidies or tax credits. republicans often want to raise the bar for these means -- the threshold for entry into these programs, in order to cut back on spending levels.
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that is not really part of the discussion right now. we have seen, for example, on social security, the president has declined in this current i,dget to include chained cp which is the way social security benefits are castrated. calculated. it is difficult in an election year to talk about raising the age or the threshold because it controversial. host: you are known as a guy with great sources on capitol hill, have you heard reactions boehnerterview speaker said about being reelected speaker where he --
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what is the reaction been? guest: we could discuss speaker john boehner four hours. we see a reinvigorated speaker. laster during the shutdown, he was thought to be on his last leg. he decided to go through with a shutdown because conservatives were pushing him in that direction. to my surprise and the surprise of others, john boehner has emerged in a stronger position because he went through with the shutdown. conservatives have applauded him. they said this is a speaker that speaks for us. there are a lot of retirement rumors out there that after maybe the midterms he would retire and go back to ohio one maybe his new condo in florida, but i actually ran into him, and i said i had one question, and room,s hustling room-to-
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and i said a lot of people think your purchase of a condo signals looming retirement, and he looked at me and laughed and i said you do not have a comment, and he said that is absolutely not true. so in this interview with "the cincinnati inquirer," and his brief exchange with the "washington post," he is pushing back and retirement rumors. it does not necessarily mean he is a leader in divided government, but in terms of political survival, he is in a decent spot. host: is there anything to read into in that he was not invited to speak at the conference? snub byalled a conservative activist. best: he knows he will never a favorite and a lot of conservative groups are targeting him and said of his
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own interest, and it is a -- snubict, and it is cnu -- to not be invited to the conference, but he is trying to manage a party with many different blocks. he is a man of the institution. he loves working here. he loves being in the house. if he is not a conservative superstar like ted cruz or sarah palin, that is ok by him. >> those a be the highlights of seatac -- host: those will be ac? highlights of cp guest: i think it could be done launch of ted cruz's presidential campaign. there is nobody on the right that appeals with the social
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residentives, it is so with conservatives. there are other rising stars. rand paul, with a certain strain of libertarian views come a remains popular with social conservatives. another person to watch is chris christie, the embattled new jersey governor, who is coming ac, which hek at cp was not invited to last year. ropes in hisn the own state, could he get conservatives to rally? if he can, it could help him for a possible 2016 run. host: you travel to new jersey recently. trenton have been to too often. host: what is the sense now? guest: they are not moving forward on fresh ground.
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you have a lot of chris theytie's former aides, are under not only state investigation, but investigation from the u.s. attorney. federal investigation is ongoing. the problem for chris christie is he might not be in the crosshairs right now, but as the cloud continues to loom, that is a political problem for him. , any before we leave cpac comments or thoughts on what they will say about the ukraine? what are the speakers talking about the situation? guest: i tweet -- guest: i tweeted over the weekend that they are probably rewriting their speeches. i spoke with senator paul and he was talking about the need to be careful on how the u.s. proceeds with the ukraine. he does not stand exactly with the president, but he is more of a dove when it comes to foreign
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policy. you will see conservatives on the more hawkish side take on the president, take on the president's management of the situation, and foreign policy will not only animate the national debate, but the republican party ahead of 2014 and 2016. host: michelle is waiting to talk to robert costa of the "washington post." michelle, good morning. caller: good morning. how are you doing? host: good, go ahead. caller: the reason why republicans are so behind ted cruz and rand paul is because they do what they say they are going to do. they do not give you a line of crap and then go to congress and not do it. like obama has been with all of his malarkey. host: what you think about speaker john boehner?
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like john boehner. he took a break last year, but he did what was right with the shutdown because obamacare is hurting a lot of people whether harry reid wants to admit it or not. host: what is your question? caller: we were talking about republicans being divided, and i have an office that allows me to watch c-span all day long, so i get to watch the house and the senate at the same time, and there are a lot of laws that passed in the house that never see the senate floor. if anybody would go look at harry reid's desk, i am sure it is pretty full of laws that the publicans have stood united and pass that harry reid will not take a look at. my question is why is it republicans are getting such a bad rap about feeding the wealthy when obama is the one who has thought this feeding gs feeding thehu
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stock market? guest: republican tell most habitually struggled with the rapid they are the party of wealth and wall street. ryan grew up as an understudy to jack kemp, and you have seen him go out to urban centers, traveling with bob woodson, a longtime community organizer, trying to show that not only is a republican party recommending cuts, but they are welling to engage with low income voters. that is where they are trying to show compassion for low income people, people struggling with the economy. at the same time, they are policies, but there is not a specific recommendation. we do see with dave camp's recent proposal on tax reform, republicans are looking to cut corporate rates, which is often
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a priority for republicans. use a republicans trying to cut rates for low income people across the board. host: we are talking about the president's 2015 budget plan. here is the budget actually being delivered to capitol hill today. that happens on budget day, the efficient delivering of the to lawmakersudget on capitol hill for radio. we're still taking your questions -- review. we're still taking your questions and calls. gladys is in chicago, illinois on our line for democrats. caller: good morning. how are you doing? host: good. caller: i am so tired of people the republican party that is doing good. they are doing nothing good. anything that president obama -- and i wish they would stop
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calling him obama. it is president obama. do, it is vice versa from what the lady said. they will not even bring a floor -- bill to the floor. the bring crappy bills to senate and say here, this is a we are giving you, deal with it. harry is not going to do that. back, leave it on his desk. it is not going to happen. this is the most in i have evere house seen. the gridlock that you are talking about on capitol hill, how do you think that plays out in november on election day? the republicans will
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lose the house. this stuff here about poor no --, republicans have we are in a situation where people do not have jobs. the lady was talking about a woman and children. out therefamilies that had jobs, they are not working, then they got food stamps, and twice this year they cut food stamps down that republicans are not offering anything to people that are of low income, middle income. the rich is getting richer, and the poor is getting poorer. a call from illinois talking about the job situation. we will see another jobs report coming out at the end of this week. how important do those monthly job reports become for the white house, and for both parties heading into 2014?
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guest: they are important every week, but important the week before the election for setting the tone. i think gladys brings up a point that the president is trying to address in the budget. because people are still struggling, he is looking to expand the social safety net, programs that-- republicans want to cut. the republican counter to that argument on the president is they want to see more done when the state, more block granting to the states on medicaid and other issues. she is right in the sense that the senate right now has a pile of republican bills that they feel will have no chance of passing the democratic senate, and the house is not taking up any kind of democratic bills on unemployment or social spending. both parties are talking past each other on the way to november. this is the emerging debate right now on poverty.
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the biggest take away i have as a reporter is that as much as there is a major difference between where the parties stand, they are both talking about social spending, poverty, and this is not a budget debate about entitlement reform like it was with paul ryan in the past. it is really both parties zeroing in on a specific issue, empowerment of the poor, supporting the poor, welfare, perhaps reforming welfare and expanding it -- that is the debate. both parties are there. host: joy would like us to clarify what is happening on capitol hill. she says is in the president budget really a wish list and it is the congress that has to originate all bills on spending. guest: it is usually a wish any real deal is brokered by the house and the senate, but the president wants
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to establish where he wants to go, and it is usually the president's prerogative to do just that. host: from twitter, government approval rating -- .uest: dismal host: some of the issues brought up our the iraqi and afghanistan war, the patriot, the bailout, nsa spying and the member still in office. guest: you have seen a real republicans that are traditionally hawkish on nsa and related issues, they are breaking apart. there is internal discussion on how to proceed on those issues. i think ukraine has put foreign policy back on the map. we thought this would be a debate about poverty or social spending, but now ukraine, the way this unfolds, it could have a major impact on how the election unfolds. host: we will talk more about the ukraine with our next guest, a former ambassador to the
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country. we have a few more minutes with robert costa of the "washington post." michael is in alabama on our line for independents. are you with us? caller: yes, sir. how are you doing? host: good. you are on with robert costa. caller: i have a couple of questions about this budget. i am not a republican, not a democrat. i am for who has the best policies. you talk about cutting spending, ,hat about all of the pork sending money overseas to feed these people? my uncle jerry made a comment -- sadid it is said we we live in the richest nation in the world, and we cannot even feed all of our people. you have harry reid calling american people liars.
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i hate to be him in nevada when i go up for reelection. let's stop spending money overseas and bring it home for a change. host: when you bring up overseas spending, is there other pork spending? caller: i saw a thing where they shrimp spent [indiscernible] a treadmill. look at theyou amount of spending being done with programs across the country from federal dollars, republicans will try to seize on that with the ryan budget, looking for cuts and reforms, and this is the debate. the president looks at the federal budget and has perhaps it should do more to help people
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across the country. republicans are looking to bring it back a bit, reform the tax code, and do more with less inside of the federal government. i think there is less attention to appropriations and pork because the earmark process has changed. it is not such a dominant part of the debate as it has been in the past. those programs are still there, and callers like you will spot them when you go to town hall meetings with your representatives. vita into in -- hayward, california. thank you for waking up with us. caller: my question is to the reporter, you continuously bring up the fact that republicans are offering reform and better programs. guest: i never said better. i follow the republican party as a beat. i have interviewed brian and
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chris van hollen over the weekend. ask a question. ryan's budget is cutting more out of the safety net for americans that are out of work and we have veterans that are on food stamps. i. continue to hold them up guest: i would not -- i would does doth you that ryan a lot. host: we brought on robert costa, a reporter with the "washington post." viewers --out these he covers these issues. donna. our line for democrats. caller: good morning. i am calling in with regards to unemployment. i have worked with two companies
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that are laid me off. i am hard-working, i work every day if possible. i want to know where is their stand on employment -- extended unemployment? host: that is a topic we have covered a little bit this morning, but if you want to review. guest: sure. we have seen long-term unemployment is an issue that needs to be addressed in capitol hill. it has not been addressed yet by the congress. republicans are reluctant to strike a deal on this issue because they would like to see some kind of concession, some kind of give either in terms of spending cuts or reforms, and unless they get that they are not likely to pass long-term extensions of insurance for those on the program. i think this will continue for at least the coming months. it is not seem to be any movement for a coming deal. ons is really about those
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long-term unemployment, and that is where the divide is, not on unemployment generally speaking, just a long-term. --t: one issue for an update i was wondering if you could give us an update on, immigration, what is the status of immigration reform, and how is it playing into the 2014 elections? guest: i sat down the republican congressman from florida, and he is hopeful, but i am not sure i see the will among house republicans to move forward with any kind of comprehensive bill or a bill that would include legalization. instead, we are likely to see is movement on republican versions of the dream act, piecemeal legislation that i think immigration debate is moving a lot like the budget -- both parties picking up the ground, making their positions known, but because we are so close to november, in a sense,
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politically, bipartisan compromise is unlikely. last thingwas the the speaker said on the immigration debate and the possibility of moving something this here? through whatoehner seemed like a big bucket of cold water on the opus of something happening this year. he said there is distrust about how the president would enact border security and border laws. john boehner has hired someone to help him on the issue. he would like to pursue immigration reform, but within the house gop, the political climate, with the move forward anything big? probably not. he knows the republican party needs to win over latino voters in a serious way. can they get back to a stable territory with voters who are skeptical questioning to do that, it probably takes legislation -- skeptical? probably takes
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legislation in the house and senate. host: robert costa is a reporter with the "washington post," and you can check out his front page story and also check it out online, washington >> it is budget day in washington. a look at the video from earlier today, the budget being delivered on capitol hill. we'll take you live to the executive office building next to the white house for a budget briefing from gene sperling and also from jason furman and the director of the office of management and budget, sylvia mathews burwell. that's coming up shortly here on c-span. ater health and human services secretary kathleen sebelius will be with us. and it starts our coverage of the budget proposal from the white house. the treasury secretary, jack
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lew, will be on capitol hill tomorrow before the senate finance committee. we'll cover that live 10:30 eastern and we'll welcome your comments on . d also the ##cspanchat and also the o.m.b. director will be on c-span3 as well. we welcome your reaction on facebook and on twitter too. so momentarily we'll take you live to the executive office building right next to the white house. we expect this to get under way shortly an we'll have it live for you. in the meantime, it is prime day in texas. we talked about this this morning on "washington journal." we'll show that to you until the event on the budget gets under way.
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>> well, we'll hold off on that conversation about the texas primary. we're a minute or two from the event getting under way next to the white house on the 2015 budget. the president already out this morning speaking at powell elementary school in the nation's capital. he focused on the education initiatives in this year's 2015 budget proposal. again, this is the administration's proposal. and that event with the president will air later in our schedule on the c-span networks. you can see it online at about the 2015 budget, "c.q.'s" paul writes, in an expression of dissatisfaction with the statutory spending level for next year, the administration is proposing an additional $56 billion in discretionary spending that will be split between defense and nondefense
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programs, including manufacturing, energy efficiency and preschool education. he writes, it's unclear what mechanism the budget will employ to add spending while adhering to the spending caps. that's from "c.q." we're live here on c-span.
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>> good afternoon, everyone. thank you for being here. as you know today we have the presentation of the president's budget. for today's briefing, as part of that introduction and presentation, i have with me the director of the office of management and budget, sylvia burwell. i have jason furman, the chairman of the president's council of economic advisors. cecilia munoz, the director of the domestic policy council, and gene sperling, the director of the economic council. each of my guests will have an opening statement and then we'll take questions related to budget matters. i'll try to direct traffic in that "q&a" session.
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i will -- in that question and answer session. on ll have comments ukraine, but if you could hold questions on those subjects not related to the budget until after we're done with q&a on the budget that will be terrific. and with that i turn it over to sylvia. >> thanks, jay. the president's 2015 budget, which we released earlier today, is basically a fiscal road map for accelerating economic growth, expanding opportunity and ensuring fiscal responsibility. it includes fully paid for investments in infrastructure, job training, preschool and pro-work tax cuts. at the same time it reduces deficits and strengthens our long-term fiscal outlook. through additional health care reforms, tax reform and by fixing our broken immigration system. we recognize the importance of the bipartisan funding compromise reached by the congress and the budget shows the president's funding
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priorities at the 2015 spending levels that were agreed to in the deal. however, we believe those are not sufficient, both in 2015 and beyond, and to ensure the nation is achieving its fullest potential. for that reason, the budget includes an opportunity, growth and security initiative that is fully paid for. it's split evenly between defense and nondefense and it presents additional investments in things like education, research and manufacturing. building on the model established in ryan-murray, the initial tiff is fully paid for with a balance package of spending cuts and tax reforms, so it is deficit neutral. supporting what the president said in the state of the union, the budget includes a series of measures to create jobs and accelerate growth in the economy. for example, as the mdafferings announced last week, the budget lays out an ambitious $302
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billion infrastructure proposal that's paid for with the transition revenue from pro-growth business tax reform. it invests in american innovation and strengthens our manufacturing base. by supporting the president's goal of creating a national network of 47 manufacturing institutes. it supports groundbreaking research to help against disease, develop new technologies and enhances the administration's efforts. to deliver a government that's more effective, efficient and supportive of economic growth. the budget also includes measures designed to expand opportunity for all americans. for example, as gene will discuss, it doubles the maximum value of the earned income tax credit for childless workers, to build on the eitc success and encouraging people to enter the work force and reduce poverty. it invests in the president's vision of making access to high-quality preschool available to every 4-year-old and it invests in new efforts
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to drive greater performance and innovation in work force training. to ensure the nation's long-term fiscal strength, the budget focuses on what are the primary drivers of long-term debt and deficits. particularly health care cost growth and inadequate revenues to meet the needs of our aging population. it builds on the reforms of the affordable care act with another $400 billion in health care savings, continuing to slow health care cost growth while improving the quality of health care. it curves that tax breaks that benefits the wealthiest and ensures that everyone is paying their fair share and calls for pro-growth immigration wmple reform which we know would not only promote economic growth but help with the deficit. under the president's leadership, the deficit has already been cut in half as a share of the economy. by paying for the new investments and tackling our true fiscal challenges, the budget continues our progress. reducing deficits as a share of
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g.d.p. to 1.6% by 2024 and with regard to the issue of stabilizing our debt to g.d.p. ratio, that occurs in 2015, and then we start a declining path. the budget shows the president's vision for moving the country forward. it provides a responsible, balanced and concrete plan that can serve as a guide for congress and its work in the upcoming year. thank you. >> thank you. my role is to present the economic forecast that underpins the budget. the administration projects that economic growth will strengthen over the next several years as the economy continues to return to the full utilization of all its resources. the ongoing recovery will be aided by several factors. the overall shift of fiscal policy towards a more neutral stance, progress in household deleveraging, including gains in housing and stock market wealth and further potential for home building.
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this near-term recovery is consistent with c.b.o. which projects a similar pace of growth over the next three years. we assume that the growth rate converges to our projected 2.3% growth rate of potential g.d.p. this, too, is generally consistent with other forecast ers, coming in slightly lower than the forecast by the blue chip, in the middle of the range of the federal reserve's central tendency and slightly above c.b.o.'s longer run projection. we also project that inflation will remain low, that the unemployment rate will continue to fall over the next several years and that interest rates will rise as the economy continues its recovery. finally, i want to note that the forecast was locked in late november in order to give agencies time to prepare their
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budget estimate. in the 3 1/2 months since then, the economy has strengthened more than most forecasters expected. g.d.p. in the second half of 2013 grew at a 3.3% annual rate, exceeding the 2.3% forecasted by the blue chip at the time. moreover, the unemployment rate has fallen .6 percentage points, exceeding the decline expected by the blue chip and that is as the result of increased employment with the participation rate ticking up over that period. as a consequence, if we were doing the forecast today, we would be projecting a higher starting off point for real g.d.p. in 2014 and a lower unemployment rate in 2014. overall, however, these changes would likely have only a small impact on the medium term budget outlook. we will, of course, have a fully updated economic and budget projection in the mid
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session review this summer that will incorporate both the positive and negative surprises since the budget forecast was finalized. and with that we'll go to cecilia. >> thank you, jason. good afternoon, everybody. it won't surprise anyone in the room to hear that for the president providing opportunity for all starts that ensuring that every child in america has access to a world class education and this budget reflects investments from the early childhood space to higher education. starting with restating the president's vision to bring high quality preschool to all 4-year-olds in this country and as a down payment on that vision, the budget includes a $500 million request which is double the amount proposed in the 2014 budget for preschool development grants to help states and cities get started in enhancing and expanding their preschool programs. the preschool initiative is paired with a $650 million initiative to support early head start partnerships that will boost the supply of infant and toddler care.
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this budget also proposes a new race to the top for america's schools, which is a $300 million program to incentivize states to adopt a comprehensive approach on closing opportunity and achievement gaps. and the budget also includes the president's vision for high school redesign, an initiative to encourage school districts and their partners to rethink what happens in high school, prioritize innovation, project-based learning opportunities that are tied to real-world experiences. and there's a $200 million investment for what we call connect educators which is a professional development initiative tied to our connect ed initiative which is aimed at helping teachers use technology in classrooms effectively. the budget also reflects the president's vision with respect to higher education, particularly with the focus on access, affordable and -- affordability and completion. that includes pell grants, launching a competitive state performance fund to drive systemic reform across the
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public higher education. and also supporting innovation through a first in the world program which would reward colleges and universities specifically for taking on innovative strategies to drive down the cost and drive up quality. so i know that we'll have time for questions on a range of other issues, but i want to flag one additional issue outside the education space. in is one of the elements of the president's opportunity growth and security initiative. it's an innovative piece of work. we call it the climate resilience fund. the president spoke about it in his recent trip to california. i draw your attention to it again because we take very seriously of our relationship with state, local, tribal governments who are engaged now in deliberate work to prepare and coordinate planning for the impacts of climate change. including the extreme weather conditions which many parts of the country have been experiencing. so this is a climate resilience fund. it's $1 billion investment in these efforts. it includes investing in research and unlocking data and
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helping communities plan and prepare and funding break through technologies and resilient infrastructure that will help communities across the country better prepare for the effects of climate change. so with that let me turn to my colleague, gene sperling. i should just say this is a guy that's dedicated to his career toward fostering growth and opportunity for all americans and he will be greatly missed when he returns to his family in los angeles. >> thank you. thank you very much, cecilia. . this is a pro-growth and prothe opportunity budget for the reasons sylvia said. it, one, creates more demand and job growth when we need it. it mablings more room in the domestic discretionary budget for the things that invest in our future and growth and productivity and fairness, and it focuses the reduction in the long-term where it will most important for long-term confidence. it's also pro-growth and pro-opportunity budget because it has very sound evidence-driventi